UPSC Courses

DNA banner


Monthly DNA

08 Mar, 2023

31 Min Read

Indo-German Relations

GS-II : International Relations Germany

Indo-German Relations

  • Olaf Scholz, the Chancellor of Germany, recently paid a bilateral visit to India.
  • It is Scholz's first trip to India after taking office as German Chancellor in December 2021, ending Angela Merkel's illustrious 16-year reign.

About the news:

  • The visit of the German chancellor is significant because it occurs towards the end of the Russia-Ukraine conflict's first year and follows the recent Chinese spy balloon incident, which sent shockwaves across global geopolitics.
  • The Green and Sustainable Development Partnership (GSDP), the Indo-Pacific, and economic cooperation were all topics of discussion between the two nations during the visit.

Highlight of the visit:

Partnership for Green Hydrogen:

  • The Indo-German Green Hydrogen Task Force was established in September 2022 to address this.
  • Germany, India, and the United States have agreed to collaborate on development initiatives in third world nations.
  • Agreements on "Digital Transformation, FinTech, IT, Telecom, and Supply Chains' Diversification" were reached by both parties.


  • The two nations have a long history of collaboration in research, innovation, and science and technology under the auspices of the Inter-Governmental Agreement on "Cooperation in Scientific Research and Technological Development".

India-Germany Relations:

  • Due to their strategic collaboration in the G4, Germany and India's bilateral relations have taken on a greater significance on the international stage.
  • In order to press for UNSC expansion and changes, these two nations joined forces with Brazil and Japan to form the Group of 4.
  • Political and economic exchange with Germany has greatly increased during the past ten years. Now, both bilaterally and globally, Germany is one of India's most significant allies.

Historical prespective:

  • India was among the first nations to recognize the Federal Republic of Germany in 1951 and one of the first to terminate the state of war with that nation following World War II
  • India backed East and West Germany's reunification in 1990 and kept up diplomatic ties with both of them.
  • While its Eastern counterpart was more sympathetic to India's move, West Germany denounced India for freeing Goa from Portuguese dominion in 1961 and backed Portugal's totalitarian dictatorship under Salazar against India.
  • This was largely a result of Cold War politics at the time, when West Germany was allied with NATO and the United States while East Germany was influenced by the Soviet Union and the Warsaw Pact.
  • With India's economic liberalisation and the end of the Cold War, the relationship, founded on shared ideals of democracy and the rule of law, has grown dramatically in the 1990s.

6th India-Germany Inter-Governmental Consultations:

  • In May 2022, the 6th IGC took place, and numerous significant agreements were signed:
  • India and Germany will work together on third-country projects under the Triangle Development Cooperation under the Green and Sustainable Development Partnership.
  • Migration and Mobility Partnership Agreement, under which the German Foreign Office and MEA will establish a direct, secure communication.
  • German aid will be used by the Indo-German Development Cooperation Regarding Renewable Energy Partnership to work towards the creation of a green hydrogen hub in India.
  • Joint Statement on the Launch of the Comprehensive Partnership on Migration and Mobility.
  • A Joint Statement on the Restoration of Forest Landscapes has been approved by Germany and India.

Cultural affinities between Germany and India:

  • Academic and cultural ties between Germany and India date back many years. The Upanishads and the Rigveda were originally translated and published by Indo-European linguist Max Mueller. The first Chair of Indology was established at the University of Bonn in 1818 as a result of German interest in Indian philosophy and languages.
  • The Indian government has so far provided funding for 31 short-term rotational studies of India in German universities. The Berlin International Film Festival and other German Indian film festivals frequently feature films and artists from India.

Strategic Ties:

  • Germany has no strategic presence in Asia, in contrast to France and the United Kingdom.
  • Over 1700 German companies operate in India, directly and indirectly supporting over 400,000 people.
  • One of the top 10 trade nations in the world and India's principal European trading partner is Germany.
  • The bilateral commerce between the two countries exceeded EUR 21.3 billion in 2019.
  • Germany is India's seventh-largest foreign direct investor, having made around USD 12 billion in FDI total between 2000 and June 2020.
India-Germany Defence and security relations:
  • In the fields of commercial marine security and anti-terrorism cooperation, India and Germany often communicate.
  • In 2006, the two countries inked an agreement on cooperation in the fight against piracy.
  • 2008 saw the first combined drills between the German and Indian navies. This collaborative drill took place in the Gulf of Aden in 2021.
  • During the most recent international military exercise, "Pitch Black 2022," held in Australia, fighter jets from the German and Indian air services took part.
Institutional Relationship:
  • The Intergovernmental Consultations (IGC) are a special mechanism that brings ministers and officials from the two sides together to have bilateral conversations about collaboration and partnership in a variety of sectors.
  • Global security policy challenges and coordinated efforts to address the climate disaster were among the IGC's focus topics.
  • Many agreements were negotiated following the last IGC in may 2022.
Partnership for Green and Sustainable Energy:
  • Collaboration in Agroecology
  • Programs of Triangular Development Cooperation in Third Nations
  • An additional initiative to improve understanding of shared national, regional, and strategic interests is the Track 1.5 Strategic Dialogue.
Challenges in the relation:
  • Germany's low trade: Compared to China, less than 10% of Germany's commerce is with India.
  • Restrictive Policies: Germany possesses a sophisticated defence industry similar to that of France, but due to the country's restricted weapons export policy, the country's defence exports fall short of their potential.
  • The potential for trade between two nations is hampered by the absence of a separate bilateral investment treaty.
  • Germany advocates for more lenient labour laws because it is sceptical of India's trade liberalisation efforts.
Way ahead
  • Germany had acknowledged India as a strategic partner in the Indo-Pacific region, particularly at a time when the region was becoming more significant in global geopolitics.
  • The relationship between Germany and India has the ability to address global concerns including green development, energy security, and food security.

Read More : - Cyber Security

Source: The Hindu

Punchhi Commission Report

GS-II : Governance Federal issues

Punchhi Commission Report

  • The Punchhi Commission's report on relations between the federal government and its constituent states will now be reviewed for state responses, according to the Union Ministry of Home Affairs (MHA).

Historical Background:

  • A Commission on Centre-State Relations was established by the Indian government, with Judge Madan Mohan Punchhi serving as its head.
  • Goal: To examine and review the operation of the current agreements between the Union and States, as well as various court rulings regarding powers, duties, and obligations in all areas, including legislative relations, administrative relations, the role of governors, emergency provisions, financial relations, economic and social planning, institutions under the Panchayati Raj, and the sharing of resources like inter-state river water, among others.

  • It was founded on April 27th, 2007.
  • The Commission investigated and reviewed the operation of the current agreements between the Union and the States as well as a number of court decisions pertaining to the rights, obligations, and duties in every area, including legislative relations, administrative relations, the function of governors, emergency provisions, and others.
  • In March 2010, the Commission delivered its seven-volume report to the government.
  • At its meetings in April 2017, November 2017, and May 2018, the Inter-State Council's (ISC) Standing Committee took the recommendations of the Punchhi group into consideration.

Highlights from the Punchhi Commission Report:

  • To look into what responsibility, power, and function the Centre might have during significant and protracted episodes of caste- or communal-based violence.
  • Also look at other aspects of the Centre-State relationship, like taxes and river connections.
  • Investigate if a central law enforcement agency is obliged to launch investigations on its own into offences that represent a serious threat to national security and have interstate or international implications.
  • To look into the value and necessity of different taxes for promoting interstate commerce and developing a unified domestic market.
  • To advance the idea of independent planning and budgeting at the district level and linking various forms of central assistance to state achievement.
  • To investigate whether supporting legislation under Article 355 is feasible.
  • To examine the Centre's function, accountability, and power in fostering the States' successful devolution of authority and power to Panchayati Raj institutions and local bodies.

Punchhi Commission's Principal Suggestion:

  • The report suggested that Articles 355 and 356 of the Constitution should be changed in relation to those two articles. By limiting the misuse of authority by the centre, the suggestion aims to protect the interests of the States.
  • It was stated that the Center should just have control over the troublesome area rather than declaring an emergency over the entire state. An emergency should last for longer than three months.

With regards to Concurrent List:

  • Before laws are filed on issues that are on the concurrent list, the Commission advised that the States be consulted through the inter-state council.

About the National Integration Council:

  • The National Integration Council was suggested developing a superseding system for issues involving internal security.
  • Additionally, it was suggested that this council hold at least one annual meeting and that a delegation of five council members visits any communally afflicted area within two days.

Selecting A Chief Minister by the Punchhi Commission through the Governor:

  • Also, the Punchhi Commission provided the Governor with several recommendations for selecting a Chief Minister:

The following principles should guide the Governor in selecting a Chief Minister:

  • The party or coalition of parties that enjoy the broadest support in the Legislative Assembly should be asked to form the government.
  • The head of the party should automatically be requested to become the Chief Minister if that party holds an absolute majority in the assembly.
  • In the absence of such a party, the Governor should appoint a Chief Minister from the party or group of parties listed below by giving each one of them a hearing in the order of preference listed below.
  • A coalition of parties established before the elections.
  • With the backing of other parties, including "independence," the largest single party stakes a claim to form the government.
  • A post-election coalition of parties in which all the members form governments.
  • A post-election coalition of political parties, including "independents," with some members coming from a government and others supporting it from the outside.
Way Ahead
  • Insightful recommendations for seamless coordination and cooperation between the union government and state governments were provided in the M.M. Punchhi Commission's report. Several of the ideas have been put into practise, such having the governor come from outside the state. To get the most out of these guidelines, a proper framework should be used to put them into practise.

Source: The Hindu


GS-III : Economic Issues eLearning


The Ministry of Health sent "show cause" letters to at least 20 businesses in February 2023 for online drug sales, including Tata-1mg, Flipkart, Apollo, PharmEasy, Amazon, and Reliance Netmeds.

What is e-pharmacy?

  • E-pharmacy refers to the purchasing and selling of drugs and other pharmaceutical products through a website or another electronic channel. These are online stores where customers can buy medications without going to physical pharmacies.
  • Brick and mortar pharmacies are operated by about 8.4 lakh pharmacists throughout India's neighbourhoods.
  • E-pharmacies provide the convenience of home delivery of medications to a person's doorstep through websites or mobile apps on the Internet.
  • When compared to conventional pharmacists, they provide drugs for sale at a discount of at least 20%.
  • While placing an order for scheduled medications, patients can upload pictures of their prescriptions.

Indian e-pharmacy scenario:

  • The Indian pharmacy market is sizable and ranked 13th in terms of value and third in terms of volume internationally as of 2017. The e-pharmacy market, however, is only thought to make up a small portion of that. In India, there are more than 200 start-ups for online pharmacies.
  • In India, e-pharmacy has grown significantly in recent years and is anticipated to expand at a strong growth rate of 21.28% CAGR from 2021 to 2027.
  • Rising healthcare expenditures, more internet and smartphone use, and rising convenience and accessibility demands are the key causes causing this growth.

E-Pharmacies' Development:

  • At COVID-19, the urgent need for drug doorstep delivery was felt. During the lockdown, home delivery services were used by around 8.8 million households.
  • In order to sell medications, e-pharmacies claim to have partnerships with retail pharmacists and refer to themselves as doorstep delivery facilitators.

What are view against online pharmacies?

  • Trade associations of active pharmacists and chemists are e-pharmacies' most ardent detractors.
  • They contend that both the jobs created by the industry and the venture capital-backed e-pharmacies pose a danger to their way of life.
  • They contend that e-pharmacies will facilitate drug misuse and the selling of subpar or fake medications, endangering the public's health.
  • Impact on retail sellers: As e-pharmacies have grown, retail sellers have begun to worry that their operations may suffer as a result of being unable to compete with the lower prices offered by online platforms.
  • Privacy considerations: Online medicine purchases raise medical privacy concerns because patient medical information may be divulged.

Regulatory matters:

  • The 1940 Drugs and Cosmetics Act covers medications. The 1940 Medicines and Cosmetics Act, however, does not specifically address online pharmacies. As a result, there are no established rules in India to govern, supervise, and oversee online pharmacies.
  • Promotion of self-medication: It is feared that e-pharmacies may encourage the already prevalent in India habit of self-medication or the irrational use of medications.

View of Competition Commission of India:

  • In a recent policy report, the CCI made the point that excessively large trade margins are a factor in India's high medicine pricing.
  • It also mentioned how trade associations' self-regulation helps them maintain large margins.
  • This is due to the fact that these trade associations have complete control over the drug delivery system, which discourages competition.
  • Thus, the Competition Commission of India (CCI) suggested that more e-pharmacies be supported.
  • Transparency can be achieved through the electronic trading of medications via online platforms where adequate regulatory measures are in place.
  • As seen in other product areas, it can also promote price rivalry between platforms and sellers.
Advantage of e-medicine:
  • Economic Potential: E-pharmacy is now in its infancy in India, but like other e-commerce categories, it has the potential to grow rapidly in the coming years.
  • The Federation of Indian Chambers of Commerce and Industry (FICCI) estimates that 5–15% of all pharmaceutical sales in India may be made through the online pharmacy model.
Consumer advantages:
  • More Convenience: E-pharmacy allows customers to easily order medications from their computer or mobile device.
  • Access is improved because online platforms may pool resources, giving Indian consumers access to medications that might otherwise be difficult to find. Also, e-pharmacies make it possible to get care in remote locations where retail pharmacies are few.
Advantage for pharmaceutical firms:
  • For pharmaceutical companies, online sales will result in significantly greater market penetration and a larger consumer base.
Advantages for Regulators:
  • Authenticity: E-pharmacies provide for effective medication tracking, which can assist in locating fake medications. This can aid in increasing market transparency and guaranteeing that authenticity is strictly upheld.
Way Forward
  • The Indian market for online pharmacies has enormous potential to address the ongoing problem of the cost and accessibility of medications. To protect the interests of the customers, steps should be done to promote the e-pharmacy sector with adequate safeguards and strict regulatory oversight.
  • To effectively serve a sizable portion of the population in rural and sub-urban areas with unmet medical requirements, government health programmes, e-health efforts, for example telemedicine, can be linked to e-pharmacies.

Source: Livemint

Grievance Appellate Committee (GAC) portal

GS-III : Economic Issues eCommerce

Grievance Appellate Committee (GAC) portal

  • In accordance with the IT Regulations, 2021, the Ministry of Electronics and Information Technology has developed the Grievance Appellate Committee (GAC) portal.

Regarding the portal:

  • It will be a virtual, online platform where all aspects of the appeals process—from filing an appeal to receiving a decision—would be handled electronically.
  • The National Informatics Center (NIC)created it.
  • It will provide citizens the opportunity to have one of three Committees established by the government hear their concerns about content takedown requests made to social media corporations.

About The Grievance Appellate Committee (GAC):

  • Based on the newly updated Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, the Center announced the creation of three GACs in January 2023.
  • A technique for online conflict settlement is the GAC. Digital technology is used throughout the whole appeals process, from filing to decision. GAC makes an effort to decide appeals in a 30-day window.
  • Composition: Its members include a chairperson, two full-time members, one of whom will be an ex-officio member and two of whom will be independent members who are all nominated by the Central Government.

Read More : - Information Technology Rules 2021

Source: The New India express

Social Stock Exchange

GS-III : Economic Issues Stock market

Social Stock Exchange

  • SEBI gave final approval to National Stock Exchange of India to establish the Social Stock Exchange (SSE).

What is A social stock exchange?

  • The SSE would operate as a distinct division within the current stock exchange and assist social businesses in raising money from the general public through its mechanism.
  • It would act as a platform for businesses to get funding for their social activities, gain publicity, and offer greater transparency on the mobilisation and use of funds.
  • Securities sold by for-profit social enterprises (SEs) on the Main Board are the only ones in which retail investors may invest.
  • Only institutional and non-institutional investors are permitted to purchase securities issued by SEs in all other circumstances.


  • Any non-profit organisation (NPO) or for-profit social enterprise (FPSEs) that demonstrates the importance of social intent will be recognised as a SE, making it possible for it to register with or be listed on the SSE.
  • In accordance with SEBI's ICDR Rules, 2018, among the 17 tenable criteria are those that contribute to eradicating hunger, poverty, malnutrition, and promoting education, employment, equality, and environmental sustainability.
  • Business foundations, political or religious organisations, professional or trade associations, infrastructure corporations, and housing providers (apart from those providing affordable housing) are not eligible.
  • NPOs would be considered disqualified if they received more than 50% of their financing from corporations.

Fundraising for NPOs:

  • NPOs may collect funds by issuing Zero Coupon Zero Principal (ZCZP) Instruments through private placement or public offering, or by accepting donations from mutual funds.
  • ZCZP bonds are distinct from ordinary bonds in that they have no principal payment due at maturity and no coupon.
  • The current minimum issue size for ZCZP issuance is set at Rs 1 crore, and the minimum application size for subscription is set at Rs 2 lakhs.
  • Moreover, Development Impact Bonds are offered following project completion and are provided based on pre-established social criteria at pre-established costs/rates.
Money Raising for FPSEs:
  • Before raising money through SSE, FPEs are not required to register with SSE.
  • It can raise money by selling stock shares, selling equity shares to an AIF, such as a Social Impact Fund, or selling debt instruments.

Also Read About : - Funding for NGOs

Source: The Economic Times

Other Related News

07 March,2023
Flagship Program On Fisheries

Flagship Program On Fisheries At the ICAR-CIBA campus in Chennai, the Union Minister of Fisheries, Animal Husbandry, and Dairy launched three National Flagship Programs. About the programs: National Surveillance Programme for Aquatic Animal Diseases (NSPAAD) Phase-II: With a

Mob lynching and Cow Vigilantism

Mob lynching and Cow Vigilantism The recent lynching and burning of two men in Haryana on the basis of allegations of unlawful cow slaughter, smuggling, or transportation bring attention to the problem of mob lynching. About cow vigilantism: Mob attacks carried out in the guise

India Denmark Cooperation

India Denmark Cooperation During the "India-Denmark: Partners for Green and Sustainable Development Conference" in New Delhi, the Union Minister for Environment, Forests, and Climate Change said that India and Denmark can work together to show that reaching ambitious climate and sust

Windsor Framework

Windsor Framework The UK government and the European Union (EU) have come to a historic agreement over the post-Brexit trade arrangements that will apply to Northern Ireland. Regarding "Windsor Framework": The Northern Ireland Protocol will be replaced by the "Windsor

SWAYATT Initiative

SWAYATT Initiative A celebration of "SWAYATT," a campaign to promote "Start-ups, Women and Youth Advantage Through e-Transactions" (SWAYATT) on the Government E-Marketplace (GeM) in New Delhi, was recently organised. SWAYATT Initiative: What is It? Under the dire

06 March,2023

INTERNATIONAL INTELECTUAL PROPERTY INDEX India is poised to become a leader for emerging markets looking to transform their economies through IP-driven innovation, according to the International Intellectual Property (IP) Index 2023 published by the U.S. Chambers of Commerce, which ranks Indi

1300-year-old Buddhist Stupa found in Odisha

1300-year-old Buddhist Stupa found in Odisha A 1,300-year-old stupa was recently found by the Archaeological Survey of India (ASI) in the Jajpur district of Odisha at a Khondalite mining site. That is where the Khondalite stones for the Puri, India, beautification project surrounding the Shr

Human Immunodeficiency Virus (HIV)

Human Immunodeficiency Virus (HIV) With the virus undetectable in his body even 4 years after discontinuing the medication, a man from Germany has become at least the third person to have been cured of HIV. Main point: The third person to have an HIV "cure" after recei

Karnataka Tops India’s State Energy Transition

Karnataka Tops India’s State Energy Transition Karnataka and Gujarat have emerged as India's frontrunners in the switch to clean electricity, according to a report by the Institute for Energy Economics and Financial Analysis (IEEFA) and Ember. While the IEEFA studies topics relati

Coin Vending Machine

Coin Vending Machine The Reserve Bank of India (RBI) is preparing to begin a pilot study to evaluate how a coin-dispensing machine that uses QR codes works (QCVM). The experiment is initially expected to be implemented at 19 venues across 12 cities across the nation. The machines are designe


Search By Date

Newsletter Subscription
SMS Alerts

Important Links

UPSC GS Mains Crash Course - RAW Prelims Answer Key 2024